A CPA who is not independent and is associated with financial statements should disclaim an opinion with respect to those financial statements. The disclaimer should:
A)clearly state the specific reasons for lack of independence.
B)not mention any reason for the disclaimer other than that the CPA was unable to conduct the examination in accordance with generally accepted auditing standards.
C)not describe the reason for lack of independence but should state specifically that the CPA is not independent.
D)include a middle paragraph clearly describing the CPA's association with the entity and explaining why the CPA was unable to gather sufficient appropriate evidential matter to warrant the expression of an opinion.

Question

Quizplus · Accepted Answer

The disclaimer should state specifically that the CPA is not independent. This is the most appropriate and direct way to convey the lack of independence to the user of the financial statements. The disclaimer should not mention any reason for the disclaimer other than the lack of independence. It is not necessary to describe the reason for the lack of independence in the disclaimer as this information can be provided separately to the appropriate parties.

A CPA Who Is Not Independent and Is Associated with Financial